11 Best Performing NASDAQ Stocks So Far in 2025

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7. Root Inc. (NASDAQ:ROOT)

Number of Hedge Fund Holders: 16

Average Upside Potential as of March 31: 88.65%

Root Inc. (NASDAQ:ROOT) offers insurance products and services in the US. It provides automobile and renters insurance products. It operates a DTC model and serves customers through mobile applications and its website. Its direct distribution channels also cover digital media, independent agents, and referrals along with distribution partners.

The company’s partnership channel rapidly expanded in 2024. New writings through this channel more than doubled in Q4 year-over-year. This accounted for almost one-third of the company’s overall business in the quarter. This growth is supported by the company’s proprietary technology stack, which refers to its internally developed set of software and hardware tools that power its operations. It enables easy integration with partner platforms and offers insurance at the right time for customers.

In 2025, the company plans to expand its current channel and transition partners to fully embedded experiences. For instance, Carvana Insurance, which was built with Root Inc. (NASDAQ:ROOT), now offers a three-click, bondable purchase experience on the Carvana platform. The company’s current partnership pipeline is concentrated in the automotive, financial services, and independent agents segments.

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